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Finance & Accounting
Pages 3 (753 words)
Accounting changes are necessary to reflect the company’s true financial status. The research focuses on the effect of AC. It includes the reasons for the accounting changes. The reasons for the accounting changes will dispel any trustworthiness issues.
Michael Ramos (2008) professional opined the primary reason for restatement is to present a more realistic picture of the company’s financial statement reports in compliance with the Sarbanes-Oxley Act of 2002 and accounting standards. The company’s plan to restate the financial statements generated a corresponding -35% decline in its sales figure. The company has been desperately using all its collection expertise to force one of its major clients, Sinovel Wind Group, to pay for its long overdue liabilities to American Superconductor. Sinovel is strategically located Chinese company. The financial statements were restated to reflect the adjustments on American Semiconductor’s results of business operations for the year 2010. The financial statement restatement precipitated to the reduction of the company’s revenues from U.S. $ 215.7 million to only U.S. $ 74.7 million for the year 2010. The restatement precipitated to the reduction of its 2011 1st quarter financial statement revenue from $360 million to only $307 million. ...
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